Daily Archives: February 1, 2022

For many years and likely many years to come, bitcoin has been the number 1 digital asset for investors, especially those looking to invest in the long-term. When big money started entering into the crypto space, bitcoin was the first stop before it diversified into other assets. However, as time as gone by and more altcoins are beginning to gain popularity, bitcoin is losing its hold as the number 1 choice for investors.

A recent survey that featured respondents from the ultra-wealthy class showed that they did not favor bitcoin as their first choice. Rather, they picked an altcoin whose growth has rivaled and even surpassed that of bitcoin since its inception.

Crypto.com revealed that the wealthy are gradually moving away from bitcoin. Their obvious choice besides the leading cryptocurrency is ethereum, which is currently the second-largest cryptocurrency by market cap.

The numbers provided by the crypto exchange showed that ethereum has made its mark on the wealthy. With its broad range of use cases and applications, like decentralized finance (DeFi) and NFTs, the value of the cryptocurrency has shot up exponentially. And with that has come more confidence from investors.

Related Reading |Ethereum Bullish Signal: Number Of Holders With 1 ETH Touches New ATH

Crypto.com reached that that ethereum beat out bitcoin by 1% when it comes to the number of high-value investors going into crypto. Bitcoin came out at 33%, while ethereum made the top of the list at 34%, proving to be the preferred digital asset for investment purposes. Crypto funds came in third at 23%, other altcoins dominated at 15%, while Dogecoin, surprisingly, made the list with 2% of investors wanting to invest in the meme coin.

The crypto exchange also noted that about 1 billion people are expected to be invested in the crypto market by 2022. By the look of things, ethereum may see a larger share of investors compared to bitcoin.

Well, for those investing in the crypto space, there could be a number of factors. One is the low-interest rates offered by banks and returns from traditional investment avenues like stock and bonds being too low to combat the inflation rate. So in order to keep inflation from eating away at their wealth, these investors have chosen the crypto market for their needs.

Bitcoin had been the inflation hedge of choice for years before now. But all of that is changing as the ethereum network has taken major steps towards becoming deflationary. President and Founder of TIGER 21, Michael Sonnenfeldt, notes that the high inflation rates are what is pushing the uber-wealthy investors towards crypto, and by extension, ethereum.

Like all investors, the super-rich are concerned about inflation and are looking to preserve their wealth in 2022, said Sonnenfeldt.

Related Reading |Ethereum Whales Quietly Filled Up On ETH While Broader Market Panicked

Likewise, another member of TIGER 21 explained that investors are starting to favor ethereum over bitcoin. Additionally, similar projects like Solana and Avalanche are also enjoying this support.

I am very bullish on both Bitcoin and ETH. My personal assessment is that the tide is turning in favor of ETH. I also like Ethereum alternatives like Solana and Avalanche. Andy Sack, member of TIGER 21.

Read more:
The Uber Rich Investors Are Picking This Altcoin Over Bitcoin - NewsBTC

One of the longest-running problems in the Bitcoin ecosystem for businesses has been banking relationships. Prior to NYDIG and their recent efforts to start plugging American banks and credit unions into Bitcoin rails, the only banking options for businesses in the space were Signature Bank in New York and Silvergate out of California. Major banks have been very combative and at odds with businesses in the space for years. Hell, they've been combative and at odds with their own customers simply trying to patronize Bitcoin businesses, closing accounts or shutting down cards for years now at this point. No businesses have exemplified the hostile and antagonistic nature of these interactions more than Bitfinex and Tether. Not just in the case of banks either, but legacy regulators.

One of the first big instances of Bitfinex running afoul of this antagonism was in 2016. The Commodity Futures Trading Commission ordered them to pay a fine of $75 thousand dollars for failing to register as a futures commission merchant (FCM) under the Commodity Exchange Act (CEA). This was ultimately the result of Americans trading leveraged financial products on the platform without Bitfinex complying with the appropriate regulations. The key point of the regulation revolved around what constituted actual delivery of the underlying commodity and in what time frame it occurred. In order to escape registration requirements you are required to be able to prove actual physical delivery of the commodity (bitcoin) within 28 days. Because all of the Bitcoin backing the leveraged products were custodied by Bitfinex and only credited to users accounts, this was viewed as not meeting the definition of physical delivery, and therefore Bitfinex was required to register as a FCM.

To sidestep this registration requirement Bitfinex ended up contracting with Bitgo to restructure how their bitcoin storage system worked in order to comply with the regulation's requirement to physically deliver within 28 days. They provided each user a segregated multisig wallet which Bitgo co-signed for and began storing each individual user's funds in separate wallets. This would be the first in a long line of events that can be ultimately described as antagonism from regulators and financial institutions forcing a business in this space to either comply with burdensome regulation or engage in riskier behavior in order to circumvent the need to comply. Ultimately this architecture change is what allowed a still unknown entity to compromise their system and get away with 119,756 BTC. Had this system not been implemented, I remind you specifically to comply with U.S. regulations, then only a tiny fraction of those funds would have been available in a hot wallet that could be remotely compromised. Even though you could put some of the blame on Bitfinex for not registering as an FCM, the regulations even putting them in the position where they had to comply or be compatible with a loophole is ultimately what created this situation in the first place.

This is a pattern that repeats itself through the entire history of Tether and Bitfinex in this ecosystem. Whether it is direct pressure from the regulators themselves, or indirect pressure in the form of regulated entities cutting business ties with Tether or Bitfinex, the story of both companies is the story of being pushed further and further into a corner as they were methodically and progressively ostracized by jurisdictional regulators and financial institutions from the United States.

Tether was originally created in 2014. For a short period it was known as "Realcoin," but after a month everything was renamed to Tether. The company and product were founded by Brock Pierce, Reeve Collins, and Craig Sellars. The initial launch of the company involved three different stablecoin tokens being issued: one for the U.S. dollar, one for the euro, and lastly one for the Japanese yen. All of these tokens were issued and circulated directly on the Bitcoin blockchain using the protocol Mastercoin (later rebranded to Omni).Omni is a second-layer protocol on top of Bitcoin using OP_RETURN to record the issuance and transfer of new tokens inside of bitcoin transactions without requiring the Bitcoin network to enable new rules (everyone who cared about the tokens could validate new rules around them and refuse to accept invalid token transactions, while everyone else could just ignore new rules and see "gibberish" encoded on the blockchain).

The reason for wanting to do this in the first place is sort of in a way the reason for Bitcoin existing in the first place, i.e., you want all the benefits Bitcoin provides minus the volatility. You want Bitcoin plus stability, i.e., a stablecoin. Bitcoin is a mechanism that allows things to settle with finality in ten minutes (and nowadays with the Lightning Network instantly), but the bitcoin asset is very volatile. So putting a token on the blockchain backed by fiat in the bank brings that same settlement efficiency (as long as you trust the people holding the fiat in the bank) to more stable fiat currencies. Now given the antagonistic way banks have dealt with companies in this space, the utility of this should be pretty intuitive. Instead of having to deal with all the problems of banks refusing transactions and wires, or specific relationships between transacting parties, you just have to get the money into a bank and can transact with the token on the blockchain. All of those annoying fiat bank problems can be pushed to the time of final redemption of the token for real bank money instead of having to be dealt with every time you make a single transaction.

Given Bitfinex's situation in hindsight it shouldn't surprise anyone they enabled trading of Tether at the start of 2015 a few months after the company and tokens launch. The ability to delay actual bank settlement in transferring fiat balances is a natural alleviation if your problem is friction dealing with the banking system. For a few years this arrangement worked very well, even to the point that other exchanges who also had troubles with the banking system used Tether for access to fiat liquidity in operating their own businesses, but eventually the legacy system began to ostracize Tether. In early 2017 Wells Fargo began blocking payments to and from Tether that flowed through them. They were the correspondent banking partner with the Taiwanese banks that Tether (and Bitfinex) were using to custody fiat funds. Both companies filed a lawsuit against Wells Fargo, but within a week both suits were dropped.

This led to a year or slightly more of banks playing whack-a-mole with Tether and Bitfinex. Right after the Wells Fargo wire blockage, Bitfinex also had all banking relationships severed by their Taiwanese banks. During this time period both companies bounced around through multiple banking relationships. Things got to the point where new accounts, sometimes even under newly incorporated entities, were being opened up in a shell game of trying to move money in and out and keep it shuffling around before any bank realized the deposits were for cryptocurrency activity.

August in 2017 marked the start of a new phase for the avalanche of attention from banks and regulators in the United States. Twitter user Bitfinexed (@Bitfinexed) made his first accusation against Bitfinex and Tether for systemic market manipulation of the entire ecosystem. His post went into defining a supposed trader on Bitfinex he called "Spoofy," and his accusations that Spoofy was engaged in widespread market manipulation on the platform. For those not familiar with trading, spoofing is a practice of putting orders in on an exchange to buy or sell something and then removing the orders when the market price reaches the point things would actually be bought or sold. Lots of the time other traders will front run and start buying or selling before those orders would be hit, so a trader with enough funds can actually push the market price around by effectively tricking other people into buying or selling, and then removing their own orders without having to fulfill them. Bitfinexed's accusations were that this behavior could very well be Bitfinex themselves, and that the behavior was a systematic manipulation of the entire crypto market. He later went on to outright accuse Tether of printing money out of thin air with no backing, but in this initial post he left it insinuated instead of accusing them outright.

For the next year or so Tether was constantly berated by accusations of fraud, market manipulation, and not being fully backed by dollar reserves. They contracted with Friedman LLP to conduct an audit of Tether reserves, but all that was ever published by the firm before Tether severed the relationship was attestations. The difference between an audit and attestation is an audit would comprehensively look through an entity's balance sheets including assets, obligations, revenue, etc., to build a comprehensive picture of how those all balance out, where as the attestations simply attested to witnessing proof of holding certain assets or currency in reserve at the time of the attestation. Eventually the relationship ended due to, paraphrasing Tether's statement on the matter, "the large amount of time and resources being spent on the very simple Tether balance sheet meaning the audit will not be produced in a short enough time frame." I would like to point out here though, unless this has recently changed in the last year or two, no other stablecoin I am aware of has published an actual full audit of their operations. So the framing back then in the context at the time I feel was a completely disingenuous singling out of Tether and demanding a higher standard of transparency than what was demanded of other stablecoin issuers.

Throughout this whole saga in late 2017/early 2018 both Bitfinex and Tether completely cut ties with U.S. customers. Two other important factors in this story occurred around the same time period, although they were to differing degrees not publicly known until later. One was Tether and Bitfinex beginning a banking relationship with Noble Bank in Puerto Rico, a 100% reserve bank founded by Brock Pierce (an original founder of Tether), and the other was Bitfinex beginning to utilize Crypto Capital for fiat payment processing. This was the entity constantly shuffling money between new bank accounts set up under new corporate entities.

Before getting into the unraveling of one of these stories (regarding the Noble Bank relationship) it's worth mentioning a short period of time in early 2018 when Bitfinex had a banking relationship with Dutch bank ING. I mean very short. Within a few weeks of Bitfinex publicly acknowledging the relationship, ING closed their banking accounts. Later in 2018 Tether and Bitfinex severed ties with Noble Bank, and the bank was put up for sale. The publicly-given reason was the banks lack of profitability as a full reserve bank, but my own speculation is that their own custodial bank New York Mellon was likely pressured by New York regulators to in turn pressure Noble Bank for their relationship with Tether and Bitfinex. See the continuing theme? Banks and regulators constantly ostracizing both companies from banking services is the pattern here. After jumping ship from Noble, Tether began holding reserves with Deltec Bank in the Bahamas.

Now here is where the story gets absurd. In 2019, $850 million dollars of Bitfinex funds held by Crypto Capital were seized by multiple governments, one of which was the United States. The company had been opening bank accounts under shell corporations and claiming to the banks that they were engaged in real estate transactions in order to process deposits and withdrawals on behalf of Bitfinex, Tether, and other cryptocurrency companies using their services. For months the company led Bitfinex on, would not fully explain the issue, and eventually Bitfinex addressed the problem by taking a loan from Tether out of their backing reserves. This is when the New York Attorney General sued Bitfinex and Tether for being short $850 million in Tether reserves. The United States government seized almost a billion dollars, and then sued the companies the money was stolen from for not having that money.

This case dragged on for almost two years until February 2021, when Tether settled with the NYAG for an $18.5 million dollar fine. They were required under the terms of the settlement to issue quarterly reports of exactly what was backing Tether.

Only about 6% is real cash reserves or treasuries under Tether's direct control (for clarification to readers not familiar with such details, "fiduciary deposits" are effectively bank deposits not directly held by Tether). The balance sheet of reserves is essentially the inverse of what it started as. In the beginning Tether actually did have hard cash on hand for reserves, now the majority of their reserves are simply commercial paper (short-term loans issued by corporations). The risk profile of this versus simply holding physical cash is massive, as the value of all that commercial paper is effectively only as stable as the company that issued it.

That said, why are they in this position in the first place? Because of the years of regulators and banks constantly cutting them off from fiat financial rails and pushing them further and further into a corner. Think about that for a minute. The entire chain of events that led to a much riskier balance sheet profile, which puts anyone holding Tether at a greater risk of losing their value, was caused directly by constant antagonism from banks and regulators. It doesn't change the risk, but I think it is an important context to provide.

So what lies ahead for Tether?

Given the recently announced El Salvadorian Bitcoin bond, and the fact that Bitfinex will act as the broker and Tether will be accepted as payment, I think the road ahead for Tether is going to be very dangerous in a sense. Simply existing as an alternative fiat settlement system has led to non-stop harassment and scrutiny from governments and banks that have at times pushed both businesses to the point of potential failure and liquidity crises. That was just for passing dollars around between exchanges. They are now, after having already been backed into a corner, literally facilitating the sale of the first sovereign Bitcoin bond in human history. If just moving money between crypto exchanges has elicited the level of regulator and bank ire that Tether and Bitfinex have been subjected to, what will this bond issuance elicit?

I fully believe in response to this, the United States government will be coming for both Bitfinex and Tether in full force. The setting of the stage for that is written all over their recent obsession with stablecoin regulations, USDC's recent move in response to this wind change of shifting all reserves to short-term treasuries, and in general the entire historical response and antagonism of both companies. The United States has subtly reacted to this ecosystem existing the way an immune system reacts to a virus, and with things evolving to the point of a nation-state issuing a bond backed by bitcoin, that immune response will likely increase.

I have always considered the attacks, and frankly deranged conspiracy theories, surrounding Tether are absurd. But that doesn't change the fact that attacks against them have continued increasing in intensity while they have been backed further and further into the corner. The more that Tether, and by proxy Bitfinex, facilitate the evolution of this ecosystem financially beyond the control of the existing U.S.-dominated financial system, the more the hammer will be swung at them. Just because prior whacks have missed doesn't mean all attempts in the future will. To think so is to subject yourself to the gambler's fallacy. Not to mention the basket of issues commercial paper backing introduces in terms of stability risk tied to general global financial markets, i.e., if the companies who issued that paper do poorly, become insolvent, or can't make good on the paper then there are no dollars backing that Tether when any of those things happen. That becomes the rock to the government antagonism's hard place. On one side the traditional banking system and regulators squeezing them into a corner, and on the other the risk of economic misfortune of issuers of the commercial paper effectively deleting that Tether backing if defaulted on.

And to top all of this off, very recently the rebel government of Myanmar in their fight against the military government adopted Tether as a currency.

What do you think the domino effects of that will be? I think they will result in Tether being backed further into a corner, and more frantic swings of the hammer will come. Maybe this is me being a pessimist, but I have always thought if Tether came to an end it would be due to the U.S. government having enough of it. I think they're about at that point.

This is a guest post by Shinobi. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

See the article here:
Bitcoin, Tether And Poking The Financial Beast - Bitcoin Magazine

Major coins traded higher over 24 hours as the global cryptocurrency market cap rose 1.9% to $1.8 trillion.

Metaverse play Decentraland (MANA) was the top 24-hour gainer, according to CoinGecko data,up 14.3% to $2.79 in the period. For the week, it has shot up 33.5%.

Other coins that saw notable gains were Nexo (NEXO) and Terra (LUNA). NEXO and LUNA rose 14% and 12.4% respectively to $51.27 and $4.64 over a 24-hour time frame.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Bitcoin managed to outdo the S&P 500 over the last week in terms of gains, according to GlobalBlock analyst Marcus Sotiriou. This is despite headwinds in the form of a hawkish Federal Reserve.

Even though the Federal Reserve Chairman, Jerome Powell, was hawkish at the FOMC meeting last Wednesday, $670 million of Bitcoin was removed from exchanges the next day, as whales continue to buy in this price range, said Sotiriou, in an emailed note.

Financial market data and content platform Santiment noted in a tweet Monday that 40,785 BTC, worth approx $1.56 billion, were moved from exchanges in the past week.

Mondays upwards movement by Bitcoin comes ahead of February, a traditionally favorable month for the apex coins price action.

The apex coin rose as the dollar took a fall with the dollar index, a measure of the greenback's strength against a basket of six currencies, declined 0.7% on Monday, according to a Reuters report.

Bitcoins newly-found momentum has enthused some analysts even though they remain cautious.

Pseudonymous analyst Kaleo pointed to BTC resistance at $39,000 levels and said if it broke through, it might might end up with a solid month or two of bullish price action across the market carrying us back into the low 50s.

Amsterdam-based cryptocurrency analyst Michal van de Poppe tweeted that Bitcoins reversal is not confirmed at all. He said it is still fighting resistance beneath previous support at $41,500.

Meanwhile, the adverse macroeconomic environment has not yet dissipated.

Powell made it clear that supply chain issues are indeed prominent, meaning that global markets may remain fearful going into the first rate hike planned for March 16th, said GlobalBlocks Sotiriou.

Read Next: Biden Moves To Regulate Bitcoin

Photo: Jose Rodrigo Safdiye/Benzinga

More:
Bitcoin, Ethereum, Dogecoin On The Rise Sorry To Play Debbie Downer But Here's Why These Analysts Refus - Benzinga

Sumit Gupta, co-founder and CEO of CoinDCX, on Monday shared a post about investing in gold or Bitcoin, the largest cryptocurrency by market value. Bitcoin is the clear winner," the CoinDCX CEO has said.

He asked investors, What do you prefer? Investing in Bitcoins? Or investing in Gold?"

Gupta who is also the Co-Chair of Blockchain and Crypto Assets Council (BACC) said, Bitcoin is, undeniable, the landmark of digital money and one of the most exciting financial technologies. It is the present and will definitely rule the future."

Reasons listed by Gupta on why you should invest in Bitcoin:

- Real-time tracking of how much gold is available is almost impossible.

- Whereas, you can easily verify every Bitcoin that has ever been mined.

- Its difficult to verify the authenticity of gold that you buy. There are tests, sure. But it takes days to get the results.

- Bitcoin, being public and open, can be verified in minutes with the click of a button.

- Gold is a centuries-old asset hence higher market cap ($10T+, lower volatility) class.

- Bitcoin is relatively new (~$1T), but network effects rapidly picking up.

- Transactions via Bitcoin can be done easily over the internet. Sending Bitcoin is as easy as sending an email.

- Sending gold from one place to another is an extremely cumbersome and tedious process.

- The purity of each piece of gold varies depending on the percentage of gold.

- Each Bitcoin represents the exact same value as another Bitcoin on the network.

- Gold is easy to counterfeit.

- Owing to the complicated, decentralized blockchain ledger system, Bitcoin is incredibly difficult to counterfeit

Meanwhile, gold price in Delhi on Monday declined marginally by 5 to 47,507 per 10 grams in line with weak international precious metal prices and rupee appreciation, according to HDFC Securities.

In the previous trade, the precious metal settled at 47,512 per 10 grams.

Silver also dipped by 27 to 60,914 per kg from 60,941 per kg in the previous trade.

The Indian rupee appreciated 45 paise to close at 74.62 against the US dollar on Monday.

In the international market, gold was trading lower at $1,788 per ounce and silver was flat at $22.42 per ounce.

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Among Bitcoin and gold, who is the clear winner? CoinDCX CEO answers - Mint

Decentralized platform Harmony saw renewed traction this month. Its native cryptocurrency ONE reaped the benefits of this interest. After hitting a low of $0.13 on 4 December, the price of ONE rose by 163%. Further, the token marked a new all-time high of $0.38 on 14 January.

Interestingly, the token has lost over 53% of its valuation since then. Well, possibly due to larger market corrections. Even so, the platforms developers have revealed ambitious plans to take Harmony to new heights in the coming year.

According to a recently released roadmap, the main focus of development will be on adoption, interoperability, decentralization, and zero-knowledge proofs. This would be achieved by building bridges with other important blockchain protocols, notably including Bitcoin and Ethereum.

Harmony is a Layer 1 smart contract platform that makes use of sharding for its consensus mechanism. This allows the protocol to scale significantly with increased block sizes and throughput. Thus, making it fully Ethereum interoperable similar to layer 2 protocols.

The blog post noted that both the Bitcoin and the Trustless Ethereum Bridge were released on Harmonys Testnet in November last year. This, in order to further its use cases.

An example of utility is a cross-chain exchange without custodial risks Ethereum developers can easily scale their applications with Harmony to enjoy our 2-second finality and cheap fees.

Moreover, apart from the top two blockchains, the development of bridges with other decentralized protocols is also underway, the announcement noted. These include Polygon, Terra, Cosmos and Polkadot, among others. The roadmap also highlighted that a host of other ecosystem-centric developments are in different stages of release Including derivatives staking, decentralized nodes, and secure resharding.

It was further highlighted that Harmonys path towards interoperability will also include the release of Cross-Shard Composability and Cross-Chain Communications. While the former will focus on atomic swaps of assets and inter-shard contracts, the latter will be aimed at building chain relays as smart contracts and data availability layers.

It should be noted here that Harmonys plans to develop its ecosystem further do not seem too far-fetched, especially considering the steep rise in its adoption. The total value locked in the protocol hit an ATH of $1.25 billion earlier this month, up from just $135 million towards the beginning of October.

While it might be giving a hard time to layer 2 protocols, Harmony still faces stiff competition from blockchains similar to itself, namely Fantom, NEAR protocol, and Cosmos. Recently, this group of alternate layer-1 blockchains has been outperforming more established ones such as Binance Smart Chain and Terra, according to CoinMarketCap.

It also noted a dramatic uptick in their on-chain activity, wallet counts, DApp ecosystems, and total value locked TVL in recent months.

Read more from the original source:
Harmony bets on Bitcoin, Ethereum bridges to improve cross-chain ecosystem - AMBCrypto News

Thailand has reportedly scrapped plans to impose a 15% withholding tax on crypto transactions following a surge incryptocurrency trading.

Earned income on crypto trading or mining can be reported as capital gains on income taxes, tax authorities said Monday, according to the Financial Times.

The new rules, outlined in a manual published by Thailands revenue department, will also allow traders to offset their annual losses against gains made in the same year.

The revenue department did a lot of homework and reached out to crypto operators as well to get feedback, said Pete Peeradej Tanruangporn, chief executive of Upbit, a crypto exchange, and co-chair of the Thailand Digital Asset Operators Trade Association. It is much more friendly to both investors and the industry.

The Bank of Thailand, the countrys Securities and Exchange Commission, and its finance ministry last week announcedplans to issue regulatory guidelines to restrict digital currency payments.

Digital assets have fast gained momentum in Thailand over the past couple of years, with average daily trading surging to 4.8 billion baht ($143.8 million) from just 240 million baht,Ekniti Nitithanprapas, director-general of the ministrys revenue department, according to Reuters.

Last week, Indonesia's Financial Services Authority warned that financial firms are not allowed to offer and facilitate sales of crypto assets amid a boom in crypto trading in Southeast Asia's largest economy.

The authority saidthat the value of crypto assets often fluctuates and that people buying into the digital assets should fully understand the risks.

Bitcoin prices turned higher Monday, rising 2.3% to $38,444 following heavy losses that hit the cryptocurrency sector. Bitcoinset an all-time high of $69,044.77 on Nov. 10.

"While the sell-off in Bitcoin has been relatively muted going into this week, the outlook for the cryptocurrency market as a whole remains negative with heavy losses seen across a range of once-popular altcoins," saidNicholas Cawley, Strategist at DailyFX. "If the market as a whole is looking to Bitcoin to lead the way higher, it is most likely to be disappointed as BTC struggles with nearby resistance."

See the original post here:
Thailand Scraps Plans to Tax Bitcoin, Crypto Transactions - TheStreet

Energy Prices

prices continue to rise over Ukraine-Russia tensions, supply likely to remain tight into the summer, and surging demand on reopening momentum and improving temperatures across Europe and Asia.

January has been a great month for oil prices and $100 oil might not be too far away. Expectations are high that supply will not come close to catching up with demand as OPEC+ will deliver gradual production increase targets that they will fall short of reaching.

Many energy traders are eagerly awaiting Tuesday's from Exxon (NYSE:), which should show they are remaining disciplined with capital expenditures. The oil market is likely to remain very tight given the geopolitical risks and slower production increases despite high crude prices as oil giants focus on clean energy transition.

prices are bouncing back as rally appears to be over. Golds rebound may have gone too far already as many traders are still looking to fade any rallies until after the first Fed rate hike. Gold will struggle over the short-term over that should remain the constant theme that will disrupt any safe-haven flows that stem from geopolitical concerns or Chinese weakness.

Golds kryptonite remains surging real yields and that trade seems poised to continue as the surge with inflation is far from over. The Fed is not done with their aggressive shift to tightening and gold could see further short-term pressure before bullion investors have the greenlight. Golds medium- and -long-term outlook remains bullish as valuation disappointment and growth concerns will become the dominant theme on Wall Street in the second half of the year.

Bitcoin () is rallying as risky assets finish a very bad January on a positive note. Bitcoin bullish momentum is slowly building up and it could surprise to the upside if the dollar continues to weaken as much of the Fed tightening for the year begins to get priced in. Bitcoins most likely scenario is to continue to consolidate here, but if risk appetite remains firm in February, a lot of money on the sideline is ready to pounce.

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Commodities And Cryptos: Crude Rally Continues, Gold Bounce, Bitcoin Rises - Investing.com

Alex Mashinsky, CEO of crypto lending platform Celsius (CRYPTO: CEL), saysthat Bitcoin (CRYPTO: BTC) could fall by up to 20% from the current price before surging higher.

In a recentinterview, Mashinsky said that Bitcoin could follow past precedents and surge by around four times over current levels, after testing the critical support level.

If Bitcoin does what it did last time, it should go at least 300% up from here. Three multiplied by $35,000 puts us just over $100,000. My projection for this year stays what I said late last year. And its $140,000 to $160,000 before the end of this year, he noted.

Bitcoin's market dominance is upover 2%in the last 24 hours and is trading at $37,998.10 at the time of writing.

Also Read:Bitcoin Leaves Exchanges Spurred By Federal Reserve Comments

Talking about Ethereum (CRYPTO: ETH), Alex said the crypto coin could hit a new all-time high later this year or early 2023 as the ecosystem expands and the adoption rate rises.

I expect Ethereum prices to go [to] the $6,000 to $7,000 level. I think the highest it got to was $4,800. But I think were going to break through that later this year, maybe beginning of next year, he added.

At the time of writing, Ethereum is trading at $2,613.88, down 0.26%in the last 24 hours.

Continue reading here:
Celsius CEO Says Bitcoin May Crash Ahead Of Massive Rally, Ethereum Heading To New All-Time High - Benzin - Benzinga